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China–Vietnam tax · six-year rule

China’s differentiator is the six-year foreign-source rule for non-domicile residents — consecutive count from 2019-01-01, reset by a 30 days trip abroad. Treaty in force since 1996-10-18.

Visa → days → tax → labour

  1. TRC / stay sets how long you may remain.
  2. Days and habitual abode decide Vietnam tax residence (threshold 183 days).
  3. Working needs a permit or exemption — separate from tax.
  4. Relief between the states runs through the China–Vietnam DTA (signed 1995-05-17).

Treaty article caps on file

Primary MFA treaty PDF (signed Beijing 17 May 1995). MLI synthesised text exists; article-by-article overrides are not re-celled here.

Article / topicOn file
Dividends10 %
Interest10 %
Royalties10 %
Construction PEmore than 6 months
Services PEmore than 6 months within any 12-month period
Art 15 short-stay limb183 days
Art 18 pensionsTaxable only in the residence state
Art 23 credit CN ← VN taxExists — dollar amounts refused
Art 23 credit VN ← CN taxExists — dollar amounts refused
Art 23 tax-sparingDeemed 10% of gross for listed Art 10–12 limbs — dollars refused
Art 4 dual-resident tie-breakerpermanent home → centre of vital interests → habitual abode → nationality → mutual agreement

Art 23(3) tax-sparing deemed-10% is on file as a mechanism. Dollar sparing amounts are refused.

Dual residence — why day counts disagree

China-side traps

Domestic PRC gates. They do not travel from the Australia page. We state the gate — not the bill.

1. Worldwide tax for residents

China tax residents are taxed on China-source and overseas income. Vietnam residence does not by itself switch that off.

2. The 183-day / domicile limb

Non-domicile individuals become residents when present in China for 183 days in a tax year. Domicile alone also makes an individual a resident. Day counts are not interchangeable with Vietnam’s machine.

3. Six-year foreign-source relief

Non-domicile residents may keep foreign-source income paid overseas out of China tax until 6 years of consecutive 183-day years — upon filing with the tax authority. The consecutive count restarts from 2019-01-01. A single trip out of China of 30 days can reset the count. Dollar IIT maths refused.

4. Short-stay <90-day China-source relief

Non-domicile individuals present under 90 days in a tax year can keep certain China-source wages paid by an overseas employer (and not borne by a China establishment) out of China IIT. This is a separate gate from the six-year rule.

What stays refused

Dollar Art 23 credits and tax-sparing amounts, six-year IIT maths, MLI article-by-article overrides, and any invented CGT exit figure for China.

All cells on this page

Common questions

What is China’s six-year tax rule?
Non-domicile individuals who reside in China 183+ days for fewer than six consecutive years may, upon filing, keep foreign-source income paid overseas out of China IIT. The consecutive count restarts from 1 January 2019. A single trip of 30+ consecutive days abroad can reset the count.
Is there a China–Vietnam tax treaty?
Yes. The 1995 DTA entered into force on 18 October 1996. Dividends, interest, and royalties are capped at 10%. Art 23 credits and a deemed-10% tax-sparing mechanism exist — dollar amounts refused.
How does China tax residence work?
Domicile alone makes a resident. Non-domicile individuals become residents at 183 days in a tax year. That is separate from Vietnam’s 183-day / abode machine.
What about stays under 90 days?
IIT Implementing Regulations Art 5 files a short-stay relief for certain China-source wages of non-domicile individuals present under 90 days. It is a different gate from the six-year rule.

Cells cite primary sources with check months. Method · Sources · Disclosure. Not personalised tax advice.

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